Industry 4.0 or smart manufacturing uses digitalization to change manufacturing methods. However, there is little empirical research into the bene its of smart manufacturing, though some studies point out that latecomers will lose competitiveness. This research uses a case study to explore how an aerospace company implemented smart manufacturing in practice. The company uses emerging technology to build up the smart manufacturing process and vertical integration. In its vertical integration, the company uses sensors to collect the manufacturing data for analysis. The results can be displayed on a mobile system immediately for managers and operators controlling the manufacturing process and productivity. The company faced challenges in launching its vertical integration in smart manufacturing, including operators' Information Communication Technology (ICT) skills and knowledge, linking the ICT systems of new and old facilities, and big data analysis capabilities.

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